We explained the perks of forming a corporation in Texas here, but what if you and/or your client are interested in forming an LLC or his or her new business? An LLC can be a great choice for a business entity, so if you are interested in forming a Texas LLC, read on.

Step 1: Choose a Name for the LLC

Under Texas law, an LLC name must contain the words the words “Limited Liability Company” or “Limited Company,” or abbreviations thereof (such as LLC or LC) and the name must be distinguishable from the names of other business entities already on file with the Texas Secretary of State. Attorneys Corporation Service, Inc. can run a quick and accurate business name availability check to ensure that your client’s desired business name is available.

Step 2: File a Certificate of Formation

Known as Articles of Organization in some states, a certificate of formation must be filed with the Texas Secretary of State. The certificate must include:

Step 3: Appoint a Registered Agent

Most states require a registered agent for service of process and Texas is no different. Every Texas LLC must have an in-state registered agent that will accept legal papers on the LLC’s behalf if it is sued. The registered agent may be a Texas resident or a business entity authorized to do business in Texas with a physical address in Texas, but the LLC cannot be its own registered agent. We can provide you with a Texas Registered Agent, or anywhere in the US, for $99 per year.

Step 4: Other Tax and Regulatory Requirements

Additional tax and regulatory requirements may apply to your Texas LLC. For example, if your client’s LLC has more than one member, it must obtain its own IRS Employer Identification Number (EIN), even if it has no employees. However, if you form a one-member LLC, you need only obtain an EIN if you elect to have it taxed as a corporation instead of a sole proprietorship (disregarded entity). When submitting your Texas certificate of formation, ask us to file your client’s EIN.

Attorneys Corporation Service, Inc. can assist you with filing your client’s LLC Certificate of Formation, and EIN. Once the articles are returned we will fax or email you the endorsed copy, and ship out the original documents that day.

Don’t forget we can also provide you with an LLC kit (Record Book, embossing seal, and membership certificates) — a great way to keep important documents organized!